The 1930’s; The Great Depression

The 1930’s; The Great

Depression

I. The 1920’s were a time of prosperity

A. President Hoover: “Good times will continue!”

B. Unions began to decline

II. People were getting rich by investing in the stock market 1. Less government regulation ,

Optimistic atmosphere

2. Buying on margin

III. Emerging problems A. Buying on credit

B. “Get rich quick” attitudes

C. Too many goods, too little demand

D. Wealth concentrated in too few hands

E. The stock market crash A. Oct. 24, 1929,

Black Thursday B. Oct. 29, 1929,

Blacker Tuesday

IV. Problems caused by the crash

A. Widespread panic

B. Suicides C. Bank closings

(weak Federal Reserve System)

D. Domino effect

V. The depression worsens A. Hoover’s “hands off” approach B. Hawley-Smoot Tariff – strangled

international tradeC. The Dust Bowl

V. The depression worsens Discussion—Hoover’s hands-off approach – right or wrong? ? ?

VI. Massive unemployment

A. House foreclosures

B. Creation of Hoovervilles 1.Hoover

blankets 2.Hoover

flags

VII. Mass migration

A. Riding the rails

B. HitchhikingC. Job rumors

VIII. Starvation A.Soup kitchens B.Apple sales C. Fear of revolt

GREAT DEPRESSION, PART 2

The 1930’s; The Great Depression

The New Deal Era

I. The election of 1932A. Hoover vs. Franklin Delano Roosevelt (FDR)B. Hoover-hated by public!C. FDR promises Americans a “New Deal”

1. “Happy days are here again”2. “The only thing we have to fear is fear

itself” 3. Fireside Chats

FDR vs. Hoover

D. FDR dominates the election (472-59)

II. The New Deal A. Changes the

role of government; more helpful to the public

B.Relief, recovery, and reform

C. The first 100 days

1. Bank holiday – banks shut down 4 days

2. 21st Amendment

3. NRA; National Recovery Administration

D. New Deal criticism

1. Too much government involvement

E. Court Packing scheme*** This would have given FDR the power to add up to 6 more justices to the Supreme Court (from 9).

If he had been able to appoint them, he would always have his way with the Supreme Court!

III. “Alphabet Soup” programs A. Programs that help alleviate the effects

of the Great Depression B. Aimed at relief, recovery, and reform

1. WPA; Works Progress Administration – Created public works projects (bridges, roads, parks, etc…)

2. AAA; Agricultural Adjustment Administration – paid farmers $ to grow fewer crops!

3. FDIC; Federal Deposit Insurance Corporation --insured money in banks up to $250,000!!

4. CCC; Civilian Conservation Corps – young men from 18 to mid 20s join this; work in the wilderness, send money back home

5. TVA; Tennessee Valley Authority – provided dams & electricity to farmers in the Tennessee Valley area

6. Social Security Act – provided a retirement income to the elderly 65 and older